Federal Reserve's Economic Outlook Suggests Possible Rate Cuts Amid Inflation Concerns

According to PANews, 10x Research shared insights on the X platform regarding the Federal Reserve's recent actions. As anticipated, the Fed has lowered its economic growth forecast and slightly slowed the pace of its balance sheet reduction, known as quantitative tightening (QT). Although these measures are not as dovish as the market had hoped, they still lean towards a dovish stance. Federal Reserve Chair Jerome Powell reinforced this tone during a post-meeting press conference, emphasizing that the recent rise in inflation might be temporary, while long-term inflation expectations remain stable. This suggests that the Fed may maintain its current stance in the coming months. The acknowledgment of weak economic growth by the Fed, coupled with downplaying inflation concerns, indicates an increasing likelihood of rate cuts. The prevailing view is that the Fed will keep interest rates unchanged until September, with the announced QT slowdown providing some support. However, persistent risks may limit the potential for risk assets to rise significantly after an initial rebound. Traders should differentiate between short-term tactical bullish positions and a more cautious mid-term outlook. As long as Bitcoin remains below the resistance zone of $90,000-$92,000, the market may continue to consolidate. With U.S. President Donald Trump expected to announce tariff policies on April 2 and the U.S. corporate earnings season beginning around April 11, major investors may adopt a wait-and-see approach. There is little evidence to suggest that retail traders are re-entering the market or viewing Powell's recent dovish remarks as a buying opportunity. Market structure indicators remain subdued, indicating that this rebound is unlikely to gain significant momentum or restore Bitcoin to a broader bullish sentiment.